ANARMNEWS

Message from the Chairman

Craig PayanAs I write this Message, the Chicago Bears are preparing to play the Green Bay Packers for the National Football Conference Cham-pionship. The winner will advance to the Su-per Bowl. Big game? You bet. Biggest game ever hosted by a Chicago sports franchise? Arguably, yes. Why? The answer is tradition.

The Bears-Packers rivalry is the oldest in the National Football League with 181 games played. It began in 1921. Because both teams are in the same NFC North division they play each other twice a year but don’t often meet in the play-offs. In fact, the only previous playoff meeting between the teams was on December 14, 1941 — just a week after the bombing of Pearl Harbor.

When Chicago coach Lovie Smith was hired in 2004, his first goal, ahead of winning the NFC North division and the Super Bowl, was to beat the Packers. Tradition matters. It motivates. It provides a stage for exceptional performance.

Tradition matters to ARM too. Our long history prompts responsibility. It compels us to not only maintain but to grow, expand and prosper. It en-courages us to look for new opportunities to build, one upon another, the platform for future performers. Many ARM agencies are operating under 2nd or 3rd generation ownership. Are there any 4th generation owners out there?

Our traditions provide every ARM agent with a capacity for greatness. Our collective efforts help all of us to succeed. The reasons to celebrate tradi-tions are clear. Let them make your ARM experience better.

For the record, the Bears lead the all-time series, 92-83-6. The teams have split their last 10 games evenly at 5-5. The Bears won that last playoff game in 1941 and went on to beat the New York Giants for their fourth NFL Championship. No matter the result this time, both teams will be back at it again next year, with yet a greater tradition to build upon.

Regards,

Craig Payan, Chairman – Associated Risk Managers

IN THIS ISSUEMessage from the Chairman

Annual ARM Partners Conference

RMD/Patti 2010 Indiana Agency of the Year

National Flood Insurance Program

New ARM Members

News in the World of ARM

New Year’s Resolutions 2011

Changes to ISO’s Commercial Auto Forms

Did You Know . . .

In Memorium

No. 16 January 2011www.armiweb.com

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‘Meet ARM in St. Louis’ this year as we hold our annual conference at the Westin St. Louis over the dates of May 3 & 4! This AAA Four Diamond Westin is situated in the heart of St. Louis’ historic Cupples Station area, across from Busch Stadium and near the famed Gateway Arch. There is a MetroLink stop right outside for convenient transportation to and from St. Louis Airport.

Missouri’s “Gateway City” is a historic, riverfront destination that has been revitalized in recent years with an attractive combination of new and upgraded facilities. More than $4 billion is being spent on developments in downtown St. Louis, and historic warehouses have been turned into new restaurants, clubs, lofts and unique shops. You’ll want to extend your visit to enjoy all the city has to offer!

Be sure to join us to learn about new products and programs and network with fellow ARM agents. Watch for details and registration information to be announced in the coming weeks, but in the meantime . . . SAVE THE DATES!

Annual ARM Partners Conference

Save the Dates on your 2011 Calendar! May 3 – 4, 2011

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ARM members keep reaching new heights! RMD/Patti Insurance Agency & Financial Services was named the Independent Insurance Agents of Indiana (IIAI or Big I) 2010 Indiana Agency of the Year. The Indiana Big I bestowed this prestigious award on RMD/Patti Insurance at last year’s 112th Annual IIAI Convention Dinner November 13th in Indianapolis, Indiana.

RMD/Patti Insurance Agency & Financial Services was nominated from a pool of over 600 Independent Indiana Insurance Agencies. Finalists were evaluated by the BIG I judging committee and according to IIAI, the award goes to “a member agency that exemplifies leadership and innovation within the independent agency system.”

RMD/Patti Insurance scored high with regard to innovative marketing strategies, a strong perpetuation plan, and for providing a solid base for a continuation of the family-owned independent insurance agency. The agency was also recognized for its automation and technologies, agency-company relations, premium volume and policy count, and involvement in IIAI programs and community contributions.

Congratulations to Jerry Dils, founding principal and President; Rick Niersbach, Executive Vice President; Jenny Durr, Vice President of Sales; Greg Easley, Vice President of Sales; John Dils, Vice President of Business Development, Anna Lohmoeller, Director of Operations, and the entire RMD/Patti family!

RMD/Patti Insurance Agency & Financial Services Named

2010 Indiana Agency of the Year

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Jerry Dils, Rick Niersbach, Greg Easley, John Dils & Jenny Durr, with mascot Jack, the donkey.

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Fact v. FictionWith flooding saturating several areas in 2010 (Providence, Rhode Island; Atlanta; and Nashville), agents should become more familiar with the National Flood Insurance Program (NFIP) and Federal Disaster Assistance programs. When it comes to flood insurance, agents are in a great position to clear up consumer misinformation. And there’s plenty of misinformation out there. Many consumers feel they don’t need flood insurance because they think they’re already protected or don’t need protection.

Some of the more common misconceptions about floods and insurance:

“Who needs flood insurance? If my home or business is ever flooded, disaster assistance will bail me out.”

Facts:• The most common form of federal disaster assistance is

a loan, which must be paid back with interest.

• Your home must have relatively minor damage that can be repair quickly in order for you to qualify for federal home repair assistance.

• The President must declare a major disaster before most forms of federal disaster assistance can be offered.

• The average Individuals and Households Program award for Presidential disaster declarations related to flooding in 2008 was less than $4,000.

• You do not qualify for federal rental assistance unless your home has been heavily damaged or destroyed.

“Flood insurance is too expensive.”

Facts:• The monthly payment on a $50,000 disaster home loan

at 4-percent interest is $303 for 20 years.

• The average premium for federally backed flood insurance through the NFIP is $550 a year.

• The cost of a Preferred Risk Policy starts as low as $119 a year.

• The duration of a Small Business Administration (SBA) disaster home loan can extend to 30 years.

“We are not going to be flooded. This area has never been flooded.”

Facts:• An average of 25 to 30 percent of all flood insurance

claims paid by the NFIP are for property outside of Special Flood Hazard Areas (SFHAs).

• Floods are the most common, and most costly, natural disaster.

• About 60 percent of all declared disasters in the past several years involved flooding.

• Flood are becoming more severe throughout the US because more roads, buildings, and parking lots are being constructed where forests and meadows once stood.

• A building located in areas with the greatest risk of flooding – SFHAs – has a 26-percent chance of being flooded during the life of a 30-year mortgage.

Flood insurance from the NFIP puts consumers in control. Homeowners, business owners, and renters can all buy flood insurance, as long as their community participates in the NFIP. Flood insurance claims are paid even if a disaster is not declared by the President. Claims are paid promptly, so flood victims can recover quickly. If you file a flood in-surance claim, you may also request an advance partial payment for your immediate needs.

Also, a flood insurance policy reimburses you for covered losses. Homeowners can buy up to $250,000 of coverage; businesses, up to $500,000. Separate contents coverage is available, so renters can also buy protection.

The risk of flooding is real. Agents should encourage their customers not to gamble any longer.

American Bankers is here to help you understand the flood program and how you should be offering flood insurance to all property clients. We have the tools to help you make sure your clients are protected correctly so you can avoid potential E&O claims. If you would like to learn more about the flood program put together for ARM Partners agents, please give me a call.

Federal Disaster Assistance and National Flood Insurance

Ron Abbene Executive Marketing Consultant Assurant Specialty Property American Bankers/American Reliable Ins. Co. 800-423-4403 ext 286 ron.abbene@assurant.com

By Ron Abbene, Assurant Specialty Property

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Welcome New ARM Members

Hastings-Williams Agency, Inc. Washington, Indiana Contact: Paul Williams E-mail: hastings-williams@sbcglobal.net

Beskin & Associates, Inc.Virginia Beach, Virginia Contacts: Rick Beskin and Steve Reardon E-mail: rick.beskin@beskin.com steve.reardon@beskin.com

Taylor AgencyClinton, North Carolina Contact: Cary Taylor E-mail: caryins@taylor-agency.com

Clinton, North Carolina

Virginia Beach, Virginia

Washington, Indiana

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What’s Going On in the World of ARM?ARM of Indiana

By Steve Stewart, Executive Director

ARM of Indiana is pleased to announce its newest mem-ber. Effective 11-1-10, Hastings-Williams Agency, Inc. of Washington, Indiana, has joined the ARM family. Wel-come to Paul Williams, President and the entire Hastings-Williams staff.

Coming in February, ARM of Indiana will be conducting a planning session with its board members and agency principals. The sessions are scheduled for Wednesday, February 9 and Thursday, February 10, 2011 in Indianapo-lis. The agenda includes planning activities and member-ship strategies for the coming year.

Also, there will be general membership meetings in March, June, September and December, and we will be holding several board meetings. Dates and times to be announced. The March meeting will include the ARM of Indiana annual meeting. New officers will be officially an-nounced after our elections.

ARM Northeast

By John McLaughlin, Executive Director

ARM Northeast’s Regional Meeting was held in Septem-ber 2010 at the Mohegan Sun Resort and Casino in Con-necticut. ARM National held their fall Board of Directors meeting in conjunction with our regional meeting.

The meeting was well attended and included our Risk Placement Services (RPS) partners. Prior to the meeting, a golf outing was held. Thanks to great weather all partici-pants enjoyed the Northeast at its finest.

The major speaker was David Evans, Senior Vice President and Publisher for the national Big “I”. David discussed the impact of the National Health Care Bill on independent insurance agents and how we could prepare for this in the coming months.

Our ARM Northeast agents continue to support the ARM programs and products as well as continuing to work hard in this very soft market. We are all looking forward to a profitable and great 2011.

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What’s Going On... continued from page 6

ARM of Ohio

By Terry Quested, Executive DirectorAt our Q4 meeting, John Nave of Huntington Insurance, Columbus Ohio completed his term as Chairman. Un-der John’s direction, Ohio adopted a plan for dramatic change in its funding method. John’s long association with ARM started in 1994 as Executive Director, and he continues his services as a Director and to the Board of ARM International.

Our Board elected its 2011-2012 Executive Committee, as follows: Heather Teegarden of Andres, O’Neil & Lowe, Chairman; George Dadas of Insurance Partners, Vice Chairman; Scott Dickey of United Insurance Services, Secretary/Treasurer.

Ohio is seeking new Shareholder membership and cre-ated a new Associate membership to encourage new memberships. This is in addition to an initiative to in-volve younger agency personnel and creating member-ship from Michigan.

Ohio’s Public Risk program, administered with the aid of the Jackson-Dieken Agency, Westlake, Ohio, has re-branded as HCC Public Risk (formerly The Alliance). The program continues to provide ARM of Ohio agents a superior facility for municipalities while HCC recently agreed to continue higher commissions for new busi-ness!

ARM South

By Danny Gleason, Executive DirectorWith several potential growth areas, we anticipate sig-nificant new business this year. In 2010, we signed with Beasley Insurance Group to write miscellaneous profes-sional insurance and other lines of business. Also, Chartis Insurance Group extended its contract with Mid Ameri-ca, making the Private Client program available to ARM South agencies.

We signed with General Agency Services to market sev-eral of their programs. While agents can access these mar-kets through brokers, ARM provides better service and pays higher commissions.

RPS introduced several national programs to ARM agen-cies. The Church Mutual program is for colleges/universi-ties with religious affiliations. It has a narrow scope; ac-counts must generate in excess of $150,000 to qualify. Using the newly approved Sales Genie product, ARM members can identify potential clients and gather lead information developed through ARM-approved Pictom-etry application.

Detailed information/leads will be available at our annual meeting. This year’s meeting will be held at the Marriott Convention Hotel, New Orleans, February 23-24, 2011. Call 800-828-6358 to register.

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New Year’s Resolutions 2011

Add Value… Add Value… Add Value… One Resource is Premium FinancingBy Patti Smith, Vice President/AFCO Credit Corporation

There’s nothing like the change in a calendar year to prompt resolutions about a fresh look at your life’s activities, both personal and professional.

On the professional side, ARMFiCo’s Premium Finance Program can help you strengthen your role as an adviser to your clients, as you present the value of premium financing and dispel the common myths.

First, let’s examine some myths about insurance premium financing:

Myth #1… Financing is only needed by businesses in poor financial shape.That may have been true in the 1950’s, when premium financing was established as a way to eliminate upfront insur-ance payments and spread the cost over the life of the policy. Today, while financing still helps eliminate large single payments, it is used far more frequently as a cash management tool.

Myth #2… Premium financing requires complicated documentation.In fact, most premium finance agreements are simple two-page loan documents, and the decision to provide financ-ing is given in under 24 hours. While it’s true that larger or more complex policies may prompt a premium finance company to require more information, for the most part financing is a simple, fast, easy process.

Myth #3… Premium financing is used mostly during hard markets when rates go up. Again, that may have been true years ago, but under current conditions where financing is used based on cash in-flows and outflows and depending upon business working capital needs and expansion plans, there is often an op-portunity for premium financing to help the business borrower who is looking for an additional line of credit without disturbing current borrowing arrangements.

Looking back at the past few years, given the financial meltdown and tough economic conditions, access to capital was a real risk for many businesses. You can differentiate yourself from the next agency by advising your clients on the complete spectrum of risks they face. Premium Finance is one way you can help your clients solve their cash flow concerns.

ARMFiCo, your agency owned premium finance company, is dedicated exclusively to meeting the needs of ARM member agencies. Working with AFCO, the premier premium finance provider, ARMFiCo will deliver the premium finance option that best meets the unique needs of your clients.

To find out how ARMFiCo can assist you, contact Janet Rogers, President of ARMFiCo, at 800.887.9605 or email: janet@armmidamerica.com

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Changes to ISO’s Commercial Auto Forms

By Mike Lopeman, Artex Risk Solutions

Attention agents: important determinations coming from the Insurance Services Office (ISO) will show up as key changes in your Motor Carrier Form and will virtually eliminate the Truckers Coverage Form. Effective February 1, 2011, nearly all states will begin using the new Motor Carrier Form, with the exception of California and New York. This means in those 48 states approving the new form, the existing Truckers Coverage Form will no longer be offered.

Also, there is a major change contained in the Motor Car-rier Form: Section II – Liability Coverage – Who is an In-sured. This section change will affect commercial vehicle customers by revising the definition of an insured.

The new coverage form states that an insured is:

1. The named insured is an insured for any covered auto.

2. Anyone else using a covered auto the named insured owns, hires or borrows with the named insured’s per-mission is an insured with some exceptions. (Refer to the policy for specific exceptions.)

3. Owners or others the named insured hires or borrows trailers from are insureds while they are attached to the covered power unit.

4. Any party leasing a non-trailer covered auto to the named insured is an insured only if all the following apply:

a. There is a written agreement;

b. The written agreement does not require the lessor to hold the named insured harmless;

c. The leased auto is used in the named insured car-rier for hire business.

The Motor Carrier Form will rely on contracts / hold harm-less agreements to determine who is covered under Sec-tion II, Part d. The issue for insureds – current contracts between owner-operators that hold the insured harm-less. All insureds must review existing contracts to ensure they are not held harmless. If any current agreement does contain hold harmless wording, a new contract must be issued.

This change in form will affect not only for-hire trucking companies but also private fleets that utilize owner op-erators / independent contractors.

There are many differences between the two forms. For example, the former Truckers Coverage Form specifically referred to the named insured’s business as a trucker and the operating rights granted by public authority. The Mo-tor Carrier Coverage Form does not. Agents and insureds need to refer to the specific coverage forms for all the terms and conditions.

Most insurance carriers will include advisory notices with their renewals. However, agents should educate their in-sureds on the new form requirements and help them un-derstand the impact of those changes on their business.

Mike Lopeman is Division Vice President Sales for Artex Risk Solutions and sales leader for the transportation programs. He is located in Gallagher’s Itasca Home office. You can reach Mike at: mike_lopeman@artexrisk.com or telephone 630-285-4292

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ARM Associated Risk ManagersStrong as MANY. Powerful as ONE.

Scott Spangler 630-285-4324 | scott_spangler@ajg.com Rose Marie Rigoni 630-285-4211 | rose_marie_rigoni@ajg.com

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Steven R. Robinson Area President RPS Cambridge - ISG Phone: 410-901-0704 Steven_Robinson@rpsins.com

ISG International is the Technology and Cyber division of Risk Placement Services, Inc. ISG’s nationally recognized CCBsure® program, is a specialty wholesale insurance pro-gram focusing on hi-tech and professional services businesses in all 50 states. With exclusive access to markets and all-lines coverage capabilities, ISG is the wholesale leader in this dynamic industry. Visit www.CCBsure.com for more information about their services.

In addition, the CCBsure team leverages their experience in the tech, online and media sectors to provide Cyber Liability coverage for ARM Partner clients of all descriptions.

Contact Steve Robinson for more information.

Robert Barlow June 7, 1940 – October 13, 2010Bob Barlow was born in New London, Wisconsin, and raised in Milwaukee. He moved to Peoria, Illinois, to work at ARM member agent Risser & Co. until he retired in 2003 and moved to Gilbert, Arizona. To quote Norm Astwood, who worked with Bob for 30 years at Risser, “He loved going to ARM meetings and associating with like-minded individu-als. He knew, and often said, that it was a pleasure to be with a group of insurance professionals that were knowl-edgeable, honorable, and likeable. He loved playing golf with the guys, general socializing and discussing insurance problems together. He believed every meeting he attended was valuable and hated it when he missed one.”

Mark Mandeville June 5, 1958 – October 2, 2010Mark was Vice President and Chief Financial Officer for Rich and Cartmill, Inc. of Tulsa, Oklahoma. He served on the Marquette school board and coached nearly every sport his four daughters played, as well as coached nearly a gen-eration of Kelley Junior Comet football players along with his brother. Mark was a passionate golfer and tennis player. He served on the Tulsa Tennis Club Board of Directors and was a longtime member of the Downtown Tulsa Rotary. Mark lived courageously over three years following his diagnosis with Amyotrophic Lateral Schlerosis (ALS). Our con-dolences go to his wife, Melanie, their children and families.

Did You Know . . .

In Memorium